Undoubtedly, the performance of silver among the precious metals has been outstanding. Even though gold is the metal that often receives much attention, it is silver (that’s usually referred to as the “poor man’s gold”) that has recorded impressive performance in the commodities market. However, another metal is increasingly stealing the limelight and it can oust silver in the foreseeable future. This metal is copper.
The price of copper has soared significantly. For example, in the U.S. alone, it’s approximated that its price has increased by over 400% during the last five years. This suggests that the demand for the metal has increased. Currently, China is the world’s largest consumer of the metal-with over 9 billion pounds. And, with the growth of Chinese industries, the demand for copper is likely to increase even more in the country and also in the rest of the world.
In contrast to silver, the benefits of copper are numerous. The metal is greatly favored because of its high strength, durability and conductivity of electricity. Copper, it is bio-static; therefore, bacteria cannot survive on its surface. Specifically, this makes its use valuable in the medical field. Further, the metal is nearly 100% recyclable. This implies that its use is cost-effective, especially for industrial operations. A normal house contains approximately 400 pounds of copper in it. Because of these benefits, copper has become the third most widely used metal in the world, after iron and aluminum.
Many investors across the world have turned into net buyers of copper, and this has caused its strong rally in recent years. Investors are accumulating it for diversification reasons because of its perception as a safe haven. More so, it is preferred because it will also increase in value in times of robust economic growth due to its many industrial uses. And, since the metal is readily available, it will continue to earn the admiration of investors. Importantly, since copper is usually considered to be an accurate measure of economic growth, investors usually look at the copper prices to determine how to invest in other financial markets.
Thus, it’s evident that copper could be the new silver in the commodities market. Traditionally, copper is regarded not only as a precious metal, but also as one of the safest avenues of investment. In recent years, the demand for copper has skyrocketed. As such, investing in copper can be regarded as a profitable and reliable venture.